Many foreign property owners are not aware of the so-called House and Land Tax (“HLT”). Properties that are subject to HLT include:
• Industrial or commercial buildings
• Houses or structures that are similar to houses
• The land on which industrial or commercial buildings or houses or structures similar to houses are situated.
The government body who is in charge of the collection of HLT depends on the location of the property, for example the Bangkok Metropolitan Administrative (สำนักงานเขตกรุงเทพมหานคร), Municipality Office (สำนักงานเทศบาล), and Tambon (Village) Administrative organizations (องค์การบริหารส่วนตำบล)
Properties that fall into the HLT category pay a tax of 12.5 % of the annual rental value or the annual assessed rental value, whichever is higher. An owner of buildings or other structures on land being consistently used is obliged to file a tax return to the District Office and pay tax by the end of February each year or within 30 days from the date of receipt of the assessment order. The correct form to submit is called “Por Ror Dor 2” in English or “ภ.ร.ด. 2” in Thai. This form is completed with the official statement of the annual rental value of the property for the preceding year. The relevant administrative district may then use this information to re-evaluate the amount of tax due.
An appeal may be filed with the District Office against the assessment order within 15 days. Further appeals may be filed with the Court within 30 days.
In cases where the total tax bill is 9,000 THB or more, a written request may be made to the relevant authority to spread the payment over three equal installments. This must be requested prior to the payment deadline.
Please note that a new property tax system is currently in the process of legislation and it does not include the HLT, so will likely be replaced in the near future. If you have any questions about property tax in Thailand, please contact us at [email protected]